Question

Suppose that all​ individuals' demand for rounds of golf at a private club is given​ by:

Q=150−P​,

where P is the price per round​ (the greens​ fee) and Q is the number of rounds.

The marginal revenue​ is:

MR=150−2Q.

The marginal cost is constant at ​$40​, and there is no fixed cost.

The single price that maximizes a​ monopolist's profit is $____.

Under​ two-part pricing, the​ firm's profit-maximizing price is ​$____ and the​ profit-maximizing quantity is ____ rounds of golf.

What would the terms be in an​ all-or-nothing offer?

A.The​ all-or-nothing offer would be 110 rounds priced at $95 per round.

B.The​ all-or-nothing offer would be 55 rounds priced at $40 per round.

C.The​ all-or-nothing offer would be 55 rounds priced at ​$95 per round.

D.The​ all-or-nothing offer would be 110 rounds priced at $40 per round.

The economic profit of the firm when it charges a single price is $____.

The economic profit of the firm when it engages into​ two-part pricing is $____.

The economic profit of the firm when it gives an​ all-or-nothing offer to its customers is ​$____.

Answer 1

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